Mid-East PP Extends Momentum in Feb; PE Remains Cautious in Run-Up to Ramadan

Polyolefin markets across the Middle East showed a mixed performance in February. Polypropylene (PP) extended its recovery across most regional markets, building on the rebound that began in January after prices had fallen to five-year lows. In contrast, polyethylene (PE) displayed a fragmented trend, with selective firmness in some grades while others lingered around their lowest levels since 2020.

Producers’ efforts to restore margins after heavy losses in 2025 remained the key driver behind price increases, particularly in PP. However, subdued downstream demand and the approaching Ramadan season continued to curb buying appetite, keeping overall sentiment cautious.

Saudi Arabia: PP Rally Gains Speed; PE Divergence Persists

In Saudi Arabia, PP prices rose for a third consecutive month in February, extending the recovery from record lows seen in the fourth quarter of 2025. Cumulative gains over the past three months reached SAR500 ($133/ton), reflecting margin recovery efforts supported by relatively tighter supply following multiple plant shutdowns in January.

Al-Waha shut its 450,000 tons per annum PP plant in Al-Jubail for scheduled maintenance, while SPC also took its PDH plant with the same capacity offline at the same location. In addition, electricity outages in Al-Jubail caused production disruptions last month, contributing to tighter supply conditions.

Despite the rally, demand was described as moderate, suggesting that the recovery remains largely supply- and margin-driven rather than demand-led.

The Saudi PE market, meanwhile, remained divided. While some HDPE grades posted modest increases, LDPE and certain other grades continued to decline, deepening their slide to multi-year lows. LLDPE also hovered around five-year low levels. A scheduled maintenance shutdown at a major Saudi cracker and downstream PE units that began in early February may affect supply dynamics in the coming weeks.

United Arab Emirates: PP Posts First Gains Since Mid-2025

In the United Arab Emirates, PP recorded its first monthly increases since mid-2025, rebounding from five-year lows. The February gains followed stability in January and were mainly attributed to firmer supplier stances amid squeezed margins.

Buyer resistance persisted due to sluggish downstream demand, and market activity remained limited as Ramadan approached. Supply levels were largely adequate, although some selective tightness was noted.

For PE, February marked the second consecutive month of slight increases, with cumulative gains reaching $40/ton. The recovery from five-year lows for HDPE and LLDPE was partly supported by the absence of competitively priced US cargoes. However, acceptance of higher levels remained challenging due to weak demand fundamentals.

East Mediterranean: PP Recovery Continues; PE Gains Limited

In Jordan and Lebanon, PP extended the gains that began in January following a five-month downturn. February increases were modest, bringing total gains for January and February to $50/ton. Market participants noted that comfortable inventory levels and the lack of strong demand recovery continued to limit sellers’ ability to push prices significantly higher.

In PE markets, firmness was largely confined to LDPE, which posted limited increases supported by relatively tighter supply from certain producers. Over the past two months, cumulative gains averaged $40/ton. Meanwhile, LLDPE and HDPE grades mostly moved sideways, reflecting balanced-to-weak demand conditions after earlier increases in January.

Outlook: Recovery Faces Seasonal Headwinds

In the near term, margin pressure and selective supply constraints are expected to continue supporting PP markets, where the rebound appears more consistent across the region.

However, subdued downstream demand and the seasonal Ramadan slowdown are likely to restrict the scope of further increases in both PP and PE. Unless supply disruptions intensify or demand improves more clearly, regional polymer markets are expected to remain cautiously balanced, with modest fluctuations rather than sharp movements.

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